Turkey will not accept any conditions on financial aid it may receive from abroad due to the coronavirus pandemic, said Göksel Aşan, head of President Recep Tayyip Erdoğan’s finance office.
“Our president has made it clear that we will not sign any agreement that will leave us in gratitude and that imposes certain conditions on us,” Aşan said in an interview with state-run Anadolu news agency on Tuesday.
“Issues such as the IMF should be evaluated within this framework.”
Erdoğan has repeatedly ruled out a new loan accord with the International Monetary Fund since a previous one expired more than a decade ago. He rejected the option during the global financial crisis of 2008, when a currency crisis struck the country two years ago and, most recently, last week, when some analysts said IMF cash was the only viable means for Turkey to bolster its finances to fight COVID-19.
“Some people say “there is a cost difference between the resources available from the IMF and those from other channels”. But no one should forget, the cost of the resources you get from the IMF are not just interest rate costs, there are many other costs for your economy,” Aşan said.
Rather than sign a loan accord, Turkey could draw on up to $6 billion in IMF aid with few conditions under a special facility to help emerging markets deal with the economic fallout of COVID-19, according to economists including Tim Ash at BlueBay Asset Management in London.
Aşan said currency swap channels with other central banks around the world do not carry conditionality.
“We can be included in the swap channels,” he said. “Swap channels can be opened between G-20 countries. Turkey is a country that can easily find foreign resources from around the world when it needs to.”